Mimesis Law
25 May 2020

Jawbone’s Preliminary Injunction Takes A Bite Out of Fitbit

Oct. 27, 2015 (Mimesis Law) — We have covered the Fitbit/Jawbone intellectual property disputes before on these pages and remain interested in seeing how the dispute plays out. For a number of reasons: 1) patent cases between competitors are always a good bellwether for how effective patent enforcement truly is for patent owners, 2) cases that are fought on multiple fronts (District Court, ITC, etc.) are more likely to have interesting procedural developments and 3) anytime trade secrets are involved, there is always the chance of some interesting remedies being crafted by the court.

So far, the first significant development in the case does not disappoint. In a decision last week, the state court trade secret case filed by Jawbone resulted in the company drawing first blood from Fitbit, with the court entering a preliminary injunction against Fitbit, and ordering the return of confidential Jawbone information apparently brought to Fitbit by ex-Jawbone employees. Unsurprisingly, Jawbone seized on this order as validation of the worthiness of its cause, and promised to continue the fight to the end.

In response, Fitbit claimed publicly that it had already agreed to return disputed files and that Jawbone was trumping a meaningless interim victory. From the looks of this interchange, there is no shortage of animosity between these disputants, and shareholders in Fitbit are advised that the various court cases are likely to take years to unwind — absent settlement of course. For our part, we will continue to monitor developments in these interesting set of cases, to see just how effective Jawbone is at forcing Fitbit to pay up for poaching its employees and allegedly infringing on its intellectual property.


The Week(s) Ahead — Expected Events

PTAB Decision in closely-watched Bass/Celgene IPR’s

Disclosures and Disclaimers:

Nothing in this material is intended to constitute legal or investment advice of any kind, nor is any of this material based on any non-public information of any kind. In addition to my work at Markman Advisors, I am also a name partner at a NYC-based intellectual property litigation boutique firm, Kroub Silbersher & Kolmykov PLLC (www.kskiplaw.com). Markman Advisors is affiliated with a Houston-based investment management firm, Perdix Capital Management, which may have existing or potential positions relating to situations discussed in this material. Markman Advisors also provides consulting services to buy-side investors, including hedge funds and family offices, that may also have or enter into positions relating to situations discussed in this material. Questions or comments can be directed to me at gaston@markmanadvisors.com. All suggestions are welcome.

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